Fed Cuts Rates by 25bps, YoY Change Negative All Year.
Fed announces a 25 basis point cut to the federal funds rate, marking the first rate reduction in 2025, adjusting the target range to 4.00%-4.25%. While this signals monetary policy easing, the year-over-year change data shows the rate growth has been negative for the entire year, reflecting economic recovery complexities.
Markets reacted positively to the cut, with major cryptocurrencies like BTC seeing short-term price increases, as investors view it as a boost for risk assets.
However, the FOMC statement emphasized softening in the labor market but did not commit to aggressive further cuts, which may cap sustained market optimism.
Historical data indicates that Fed easing cycles often amplify volatility in the crypto market, especially amid macroeconomic uncertainties.
Following this cut, stablecoin yields may face compression, impacting DeFi protocols.
Overall, the news reinforces easing expectations, but the negative YoY serves as a reminder of potential economic slowdown risks.
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